Cloud PBX Market Size, Share, Statistics Report 2022, 2027

Global Cloud PBX Market–To 2027–By Enterprise Size (Large Enterprise and SMEs); by End-User (IT & Telecom, BFSI, Healthcare, Retail, Manufacturing, and Others); and by Geography

Publication Month : Jun 2019

  • Report Code : TIPTE00002435
  • Category : Technology, Media and Telecommunications
  • Status : Published
  • No. of Pages : 157
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[Research Report] The Cloud PBX market was valued at US$ 5,068.1 million in 2018, It is expected to grow at a CAGR of 15.5% during the forecast period, 2019–2027.

The Internet is one of the most revolutionary innovations after the evolution of artificial light. It has changed how we function, work, think, and conduct our professional and personal lives. Cloud PBX development is an advancement that is dependent on the support of the internet, and that is arguably the biggest reason for its brilliance. The PBX system is a system to answer calls and routes them to the desired department or user extension. The traditional PBX systems are bulking physical machines and require large storage space. The financial commitment behind these monstrosities is considerable, limiting their user interface to the big shots. The cloud version is the much-needed upgrade in the PBX system, which provides fabulous call management, routing functions, storage capacity, and other added features but without the hassle and cost of a human-operated, on-site PBX machine. The growth of the global cloud PBX market is attributed to the growing adoption of this trendy technology by many small companies that have been unable to enjoy the benefits provided by a PBX system until now.

Future Trends

Any technology-related launches have a strong tendency to turn heads and pique the interest of technologically savvy people. As the cloud services enter a growth phase, moving on from an initial introductory phase when nobody was aware of this marvel, now many companies have come to know and admire the brilliance of the cloud PBX services, welcoming the innovation with open hands. Though we do not entirely know the response it will receive, and we cannot anticipate the effect it will have on the future of the corporations that integrate this into their regular functioning model; experts are holding out for favorable outcomes, and going by the sales of its infancy years, they might be right on the money. All in all, we can make an educated guess on the market doing well.


The Increasing Need for Effective Communication in Enterprises

Communication is integral to any organization hosting several departments with numerous employees constantly collaborating to produce quality output. Communication can help bring forth ideas and initiate the process of their implementation, which could revolutionize the trajectory of the company’s growth. With the understanding of how important dialog can be in such a system, we can all understand the need for a PBX system in any enterprise. Cloud PBX has taken this a step further with its cutting-edge technology and resultant speed, attributed to its internet-based system. The cost-effectiveness, which allows many small enterprises and start-ups a taste of the technology, and the omission of physical space requirement, has put the product in the limelight.

The Reduced Cost of Operation is Driving the Adoption of Cloud PBX

The most enticing feature of cloud PBX that makes it superior to similar products in the market is its array of communication options (audio, video, text, messaging). The IP address makes this a cakewalk and proceeds to provide myriad other benefits. Despite the alluring advantages of cloud services, cost-effectiveness has been quoted as the main reason for its immense success in the market. It has opened up the box of opportunities for large and small enterprises alike, making the competitive ground level for them.


Security Concerns due to Increasing Cybercrime

With great innovations come greater threats. The Internet is an all-inclusive platform and thus vulnerable to intruders. Since the cloud operates through the Internet, cloud PBX has some drawbacks where cyber safety is concerned. There are known instances of eavesdropping strangers gaining access to sensitive information and, in extreme cases, gaining authority to manipulate the monitoring tools. This major concern has precipitated hindrances to the cloud PBX market growth.

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Global Cloud PBX Market: Strategic Insights

Market Size Value inUS$ 5,068.1 Million in 2018
Market Size Value byUS$ 18,227.9 Million by 2027
Growth rateCAGR of 15.5% from 2019-2027
Forecast Period2019-2027
Base Year2019
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Market Segmentation

By Enterprise Size:

The Wide Usage of Cloud Based Services by Large Enterprises Established the Segment as the Front Runner

Based on enterprise size, the global cloud PBX market is bifurcated into small & medium enterprises (SMEs) and large enterprises. In 2018, the large enterprises' segment held the largest market share by product. 75% of businesses worldwide have succumbed to the pull of cloud services. Any large company with a substantial number of employees, 800 or more, faces many problems. Speaking of coordination, since the employees may be based in several different locations, it is sometimes hard to get a message across without any miscommunication. In such a situation, a PBX system becomes an absolute necessity. The traditional PBX systems require maintenance and repair. The setup of such systems is costly to start with. So, the cloud PBX services seems like the better option because better capital goods used usually has a direct impact on the productivity of the employee, which leads to increased profits. This is the main attraction point of cloud-based PBX for bigger enterprises.

By End User:

Major Investments from Market Players Have Raised the Segment to the Top

Based on the end-user spectrum, the global cloud PBX market is divided into IT & telecom, BFSI, healthcare, retail, manufacturing, and others. In 2018, the IT & Telecom segment held the largest share of the market. The competition is nothing short of cutthroat for companies operating in the IT and technology sectors. Laging behind in any aspect of the business is not an option. Strengthening communication between the staff is more important than many people anticipate for the enterprise's success. Cloud PBX has provided a platform for instant and effective collaboration. In a bid to be more prudent about their shortcomings and beat the competition, IT companies have readily adopted cloud services.

Rest of Asia Pacific Cloud PBX Market by End-user

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Regional Analysis

The global cloud PBX market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.

North America holds the largest market for the cloud PBX. The United States held the largest cloud PBX market and is expected to grow further in the foreseeable future. The United States is the pioneer of development, which has been heavily attributed to the ready adoption of technological adoptions. Companies also prefer to use Cloud-based communications to help them keep a record of any important communications, which can easily be used later as a reference, especially when creative ideas are concerned. The fact that many big industries are based in the US contributes to the prominent use of Cloud PBX in the region, as it is heavily used in large industries and enterprises.

Asia Pacific is expected to account for the fastest growth in the cloud PBX market. In Japan and South Korea, the market is expected to grow tremendously, owing to the increasing number of people adopting cloud services and the technological advancements by key players in cloud technology.

Cloud PBX Lucrative Regional Markets

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Key Market Players

  • 3CX (US)
  • 8X8, Inc (US)
  • AT&T, Inc (US)
  • Avaya Inc (US)
  • Cisco Systems, Inc (US)
  • Comcast Corporation (US)
  • Microsoft Corporation (US)
  • Ringcentral, Inc (US)
  • Voyce, Ltd (UK)
  • Sors Global (US)

Key Developments:

  • May 2019:

    Zoom Video Communications, an enterprise video-first unified communications solutions provider, and RingCentral signed a multi-year partnership extension. This extension will enable RingCentral customers to continue replacing their legacy, on-premise communications infrastructure with a best-in-class solution that leverages the combined power of RingCentral’s cloud PBX and Zoom’s video communications platform.
  • July 2018:

    8x8, Inc. announced the availability of its next-generation intelligent cloud solutions for video conferencing, contact center, voice, and team messaging, among other services. The solution was developed by integrating a contact center and a unified communication environment, especially for large enterprises. The solutions are aimed especially at the retail, healthcare, manufacturing, technology, and utility sectors.
  • October 2017:

    BroadSoft, a leading cloud-based calling and contact center service provider, agreed with Cisco for its acquisition. The acquisition is expected to boost Cisco’s capabilities for enabling robust cloud-based PBX solutions suites for their small and large empire owners.
  • July 2017:

    RingCentral announced the expansion of TELUS’ cloud communications portfolio for Canadian businesses with the introduction of TELUS Business Connect Mobile. The new cloud-based mobile offering makes the features of an enterprise-grade PBX phone system available on smartphones and tablets – eliminating the need for a landline or expensive on-premise equipment.

Report Coverage

The global cloud PBX market research report provides detailed insights into market share, size, trends, and opportunities. It briefs the role of drivers and restraints impacting market fluctuation. Besides, the industrial landscape, market overview, and global business analysis have been elaborated to help determine future business investments. Leading market players with recent developments have been highlighted, mentioning product launches, expansions, and acquisitions.

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Enterprise Size, and End-User

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies - Cloud PBX Market

  1. 3CX
  2. 8x8, Inc.
  3. AT&T Inc.
  4. Comcast Corporation
  5. SORS Global
  6. Avaya Inc.
  7. Voyced Ltd.
  8. Cisco
  9. Microsoft
  10. RingCentral, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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